Due Date for Filing of Audit Report under Section 44AB

Assessment Year 2026‑27 (Financial Year 2025‑26)

Under Section 44AB of the Income‑tax Act, 1961, every person carrying on business or profession whose turnover or gross receipts exceed prescribed limits must get their accounts audited by a Chartered Accountant and furnish the audit report in Form 3CA/3CB along with Form 3CD.

As per the latest guidance from the Central Board of Direct Taxes (CBDT) and verified through trusted sources such as CAclubindia and Taxmann, the due date for filing the audit report for AY 2026‑27 is:

·         30 September 2026 – for all assessees not covered by transfer‑pricing provisions.

·         31 October 2026 – for assessees required to furnish a transfer‑pricing report under Section 92E (Form 3CEB).

·         31 October 2026 – corresponding due date for filing the income‑tax return for audited cases.

Applicability of Tax Audit under Section 44AB

A tax audit is mandatory for FY 2025‑26 if any of the following conditions are met:

·         Business turnover exceeds ₹1 crore, or ₹10 crore where cash receipts and payments each do not exceed 5 % of total receipts/payments (digital‑transaction relaxation).

·         Professional gross receipts exceed ₹50 lakh.

·         Presumptive‑taxation cases under Sections 44AD, 44ADA, or 44AE where income is declared below the presumptive rate or the scheme is opted out within the lock‑in period.

·         Loss cases where total income exceeds the basic exemption limit.

These thresholds remain unchanged for AY 2026‑27, as confirmed by the Finance Act 2021 and subsequent CBDT notifications.

Key Compliance Points

·         The audit report must be electronically filed on the Income‑tax e‑filing portal using the CA’s digital signature.

·         Ensure the audit report is uploaded before filing the income‑tax return, as the ITR utility requires audit‑report acknowledgment details.

·         Penalty for delay: Under Section 271B, failure to furnish the audit report by the due date may attract a penalty of 0.5 % of turnover or ₹1,50,000, whichever is lower.

·         Relief under Section 273B may be available if the assessee proves reasonable cause for delay (e.g., system issues, illness, or natural calamity).

Practical Guidance

·         Review digital‑transaction ratios early to determine eligibility for the ₹10 crore threshold.

·         Coordinate with your Chartered Accountant well before September 2026 to avoid last‑minute portal congestion.

·         Maintain proper documentation for TDS, GST reconciliation, and related‑party transactions to ensure smooth audit completion.

Conclusion

Timely filing of the audit report under Section 44AB is crucial for compliance and to avoid penalties or delayed return filing. Businesses and professionals should prepare their financial statements and engage their auditors well in advance.

For expert guidance on this topic, contact your tax professional today.